LinkedIn Unveils Follow-On Offering Worth at Least $1 Billion

LinkedIn just announced plans to sell $1 billion in stock, which would mark the biggest equity raise by a U.S.-listed Internet company since Facebook 's initial public offering in May 2012.

The networking website operator is taking advantage of a 114% rally in its share price this year and kicking off what bankers say will be a busy post-Labor Day period for stock sales. Following the typical late-August capital markets lull, companies want to cash in on rising valuations and strong stock-market demand this year.

LinkedIn says it’s looking to increase its financial flexibility and “further strengthen” its balance sheet — though it says it doesn’t anticipate needing the cash to fund operations in the next year. The offering is slated to price after Wednesday’s close, according to people familiar with the deal.

Internet company stock sales of this size don’t walk in the door every day. Facebook raised $16 billion in its IPO. There have been just nine Internet debuts or follow-on offerings raising at least $1 billion since 2002, according to Dealogic.

LinkedIn down 2% after-hours on the announcement. It closed at a record $246.13 Tuesday.